Buying RCI Points Guide Part 1
Buying RCI Points Guide, including how to buy rci points
Buying RCI Points Guide, including how to buy rci points
The Buying RCI Points Guide for users and prospective buyers
Buying RCI Points Guide. RCI Points, what is RCI Points? What’s is RCI Points all about?
RCI Points is best described as a currency for timeshare. This is the RCI Points Buyers Guide. See also What Are RCI Timeshare Points?
Buying RCI Points Guide. See also Quick RCI Points Guide (On request) Simplicity.
Rather than have all the variants of seasons, week numbers, unit sizes, resort facilities, grades and location, all coupled to how far in advance you decide to put your timeshare up for exchange with RCI, you just have a value in points, called RCI Points Timeshares.
These RCI points have an annual management fee (MF) to keep the timeshare you own in good condition.
Then on top of this, there is a fee to RCI to make a reservation – this varies to the duration, whether days or weeks, the price varies accordingly.
There is also a mandatory fee every year to RCI to remain a member. More on management fees later in this article.
So the concept is you buy your vacation (the timeshare) and the cost thereafter for your vacations is the management fee cost every year and your RCI membership and reservations fee.
The name of the game is to increase the quality of your vacation accommodation, whilst making the cost of the vacation cheaper than renting. That is the “point” of owning!
You can also do this much cheaper by using Travel-Perks Resort Vacations where you could book weeks from $279 per apartment per week.
You could get the same end vacation without all the financial outlay. You become a Lifetime member and simply book thru your membership. No property to buy, no upkeep costs of a resort to share in paying for and no yearly costs in membership.
A word of caution, it’s easy to get the buying choice wrong, by simply buying the wrong timeshare with a ridiculously high management fee, for the time of year of the week owned, but we will cover how to avoid that later in this article.
Getting A Good Ownership
A popular and cost-effective way to own RCI Points is to buy RCI Points made from pure RCI Points, where you have any amount of RCI Pure points you want to own without having to buy a timeshare week or weeks.
The purchase is a lot simpler than buying weeks and can be completed quite quickly.
All RCI Points whether pure points or weeks used as points are the same value and work the same the world over. So how you own them doesn’t affect how you use them.
The downside of pure points or next generation points is they have a high management fee,
Look at the management fee as the base cost of your vacation every year, your starter of a few other costs.
You own a week or weeks of peak timeshare at a resort and convert “cede” them into RCI Points.
That basically means you give the right to use that timeshare week to RCI every year for as long as you want to remain in RCI Points.
They can then offer your week to other owners and the same applies to you, in that you can book and go to anywhere within RCI that is available to book. You must cede a week for it to be in RCI points.
The specific timeshare you own determines how many points it is worth.
For instance, a low, out of season studio in a standard resort can be worth just 9,000 points, whereas a 3 bedroom week in say Disney or Hilton in peak season can be 89,000 points.
So the more it is worth as a timeshare in popularity and demand, the more points you get for it and these are issued every year to your account.
So…..quality and high season and big units with a low management fee
When buying a timeshare, equate it to what your own vacation value is.
In the real World as a rental vacation you wouldn’t pay $1,000 for a week in Motel room in January in a resort with no amenities where it is likely to be completely empty except for you.
You know where we are heading! Don’t own an out of season timeshare no matter how good it is, as nobody wants to use it, and that is reflected in the points value or trading power that it will have, BUT NOT in how much you share in the management costs, those hefty costs are the same as a peak season beauty, except you don’t get to share those points values.
To get the most bang for your buck you need any timeshare to work in your favor.
Modest resort? Yup who wants to be the mug paying for the championship golf course at a resort you won’t ever visit!
So how do you get this value of points if you own weeks?
RCI Points values are allocated to weeks by RCI.
Every week in every unit has a specific value if they are fixed weeks.
When you buy a week you can find out what value it has in RCI Points from your RCI Points vendor before purchase.
You get this value in points every year to spend on vacations as you want, up to the limit that you own.
So sticking with the example above you might have a studio week worth 9000 points and a 3 bedroom week worth 120,000 points, together your points ownership would be 129,000 points.
They aren’t separated in any way, they are one points holding. You could book 12 weeks at 10,000 points a vacation, or two weeks in a Gold Crown 2 bed at 60,000 points a week, any imaginable combination up to the total of your ownership total, in this example 129,000 points.
So lets recap. You can buy any amount of RCI pure points without the hassle of owning a timeshare property.
Or you can buy a week or weeks of a timeshare with their own values and cede them into RCI Points and the total is what you own in RCI Points.
Of course, YOU still own the properties, but they are RCI Points in your membership so long as you wish to remain in RCI Points (you can withdraw and stay with fixed weeks as a timeshare). This can take two years with RCI.
You can also own a mixture of both pure points and RCI weeks as points, they all get used the same when making a booking and appear as one statement in your RCI account online.
Note some existing owners use the term “RCI Points For Sale” and mean they want to rent their points, whereas sellers term selling a timeshare in the same way when they are selling the ownership in total. . This can be confusing when looking online.
RCI Points Buying Guide – how to choose a good vacation points timeshare.
So far so good, but what about those running costs and how do you know how to choose a good timeshare to buy that works well in RCI Points as opposed to a nightmare?
Well, choosing is easier than you think, but takes a little explaining.
First of all, you have to understand the management fee and the different valuations given to weeks by RCI, dependent on their “Resorts Of Proven Demand” Index.
All timeshares have what is called a maintenance or management fee (same thing), which is billed every year for each week owned.
This is a charge for the running cost of the whole resort, shared among all the owners and covers staff costs, upkeep, taxes, tourism licenses renovation and refurbishment and of course, the maintenance of the specific apartment that you own as well as all other costs a resort incurs, swimming pool maintenance thru to golf course green keeping.
This ensures that what you own remains in tip-top condition so that anyone that uses it feels that it is as good as new.
Management Fees and Weeks As Points usually give a lower Management Fee. The thing with management fees is that they are shared collectively with all owners at a resort, right across the year.
Resorts charge a fee for each type or class of unit, so a studio one fee, a one bedroom another fee, a two bed another and similarly a unit with more bathrooms may have another higher fee and so on. So an apartment suite may be $800 a week and here is the bit you need to be clever on.
It is level for all owners throughout the year. An owner with a week worth 9,000 points would have a management fee of US$800, but then again so would the owner of the peak week in that same apartment in summer with the points value of 50,000
So a clever buyer goes for the peak weeks with the highest values as they in effect have the lowest running costs – that is the ratio of points to management fee cost.
Also look at what else you have to maintain at your chosen resort. The more amenities, the greater the shared costs.
Pure points management fees sometimes called Yearly Resort Fees are fair in that they are an average of all weeks at a resort and are appearing before a purchase.
They are also stated quite clearly on the new RCI Points Purchase Agreements. The great thing about pure points is that you don’t buy the low valued week by making a poor purchase and so pure points are very very popular. A good management fee rate would be anything below $0.015 cents a point. Remember you can rent more RCI points at the RCI rate of $0.03 cents a point up to a total of 50% of the amount you hold in your ownership.
To illustrate Buying RCI Points Guide shows the difference between the right way and the wrong way to buy weeks as points and pure points:-
2 weeks in an apartment with a value of 15,000 points and $800 management fees each and your annual value and cost would be 30,000 points and a management fee of $1600 - Painful and the wrong way to own!
1 week in the same apartment with a value of 50,000 points and $800 management fees and your annual value and cost would be 50,000 points and a management fee of $800 - Excellent, that's the right way to buy weeks as points!
Why is it so hard to find the best RCI Points weeks deals?
Let the Timesharer Buying RCI Points Guide clue you up on that one.
That's because there are only 6 or fewer peak weeks of timeshare in every timeshare apartment suite and they are also the most popular times of the year - which is why they are peak obviously.
Because they are the most popular they come at a premium price, so you need to find a great resale peak week/s from a seller that is an RCI Points vendor (or they won't be able to cede your week into points).
Resorts buy back peak weeks for obvious reasons - they are the best to use for resort rental and rarely push these for sale as they are a cash cow in rental terms.
RCI Points Specialists who know all about how to choose RCI Points usually have the best deals in both RCI Pure Points and RCI Weeks as points.
An example currently would be to choose a timeshare resale at a resort in the sun year round (no heating costs and no harsh weather costings) where the resort doesn't have fancy and very expensive facilities (golf course, beachfront for sand wear on the property etc) and that means you aren't paying for a host of facilities you are never going to use yourself.
Get a collection of peak weeks together with a low management fee and you can have an RCI Points ownership with a half or even a third of the management costs of owning elsewhere and the Points are exactly the same, you just pay less to look after them. This means every vacation you book forever becomes a third of the cost to you, as that of other owners. Now that is buying RCI Points the right way!
You can take that perfection to a whole new level if you are even more astute.
There are a few good companies out there, but most aren't so clever on the best weeks for YOU as opposed to what they want to sell, they obviously have to do something with those out of season weeks.
Buying RCI Points Guide - Sticking with the management fees. If you buy a resort with all the tricks and more at a top location you might have management fees up there in the $1000 for a week worth only 30,000 points.
That's fine if you want to use it every year and will get the benefit, but not such a clever idea if you never intend to go there or just go there once.
If you want to use a top resort you should be buying and owning timeshare to use onsite and stick with weeks as opposed to points.
Good vs Bad RCI Points Ownership Purchase
Let's assume two owners at the same resort (from a point purchase point of view) make the same vacation choice to a 1 bedroom gold crown worth 45000 points. The owner with 45000 points from a fixed week and a management fee of $1350 and the other owner with 79,000 RCI platinum points with a management fee of $649. Firstly you can see who is paying the least for that vacation, but wait a minute, the clever owner with the 79000 pure platinum points still has 34,000 points left over for another vacation! In reality, his management fee cost for this vacation pro rata to his points used is only CAD$649. So one owner is booking EXACTLY the same vacation as the other but the cost to one is $1350 and the cost to the other $649, that is a stunning $710 difference for owning the same amount of points to go to the same vacation.
If you think that sounds a big difference, try expanding that over the next 10 years of vacations, CAD$7100 and that's just because one owner was better at buying than the other.
We hope you take our advice in the Buying RCI Points Guide and follow our guidelines and wish you happy vacations!
No Yearly Fees, No Management Fees, No property outlay or capital investment, just great vacations at timeshare resorts worldwide